Lennar posted its second-quarter earnings that surpassed analysts’ expectations, leading to the homebuilding company’s shares climbing by as much as 5% in the premarket Tuesday.
Net income rose to $4.49 a share, from the year-ago quarter’s $2.65 a share. Excluding mark-to-market losses on technology investments, the company’s earnings came in at $4.69, exceeding the consensus expectations of $3.95 a share (based on FactSet poll).
Lennar’s total revenue surged +30% from the year-ago quarter to $8.36 billion, topping FactSet consensus of $8.11 billion.
Revenue from the Homebuilding business segment rose +32.3% from the prior-year quarter to $7.98 billion. Home deliveries for the quarter increased +14% year-over-year to 16,549 units. The average sales price of homes delivered was $483,000, + 17% higher from the year-ago level.
New orders were up+ 4% from the year-ago quarter to 17,792 homes. The potential value of net orders climbed +20% year over year to $9.1 billion.
Gross margin on home sales widened to 23.4% from 18.6%, notwithstanding increases in materials costs and wages .
“The weight of a rapid doubling of interest rates over six months, together with accelerated price appreciation, began to drive buyers in many markets to pause and reconsider. We began to see these effects after quarter end,” Lennar executive chairman Stuart Miller mentioned.
Looking ahead, , Lennar expects deliveries of 68,000 homes for fiscal year 2022. The company, did not issue guidance for other metrics, citing its belief that the Fed’s actions “are still quite fluid and responsive to inflation data.”
For the fiscal third quarter, the company projects deliveries in the range of 17,000-18,500 homes, with a gross margin on home sales of 28.5-29.5%. It expects new orders to be in the range of 16,000 to 18,000 units,
The 50-day moving average for LEN moved above the 200-day moving average on September 08, 2025. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
The Momentum Indicator moved above the 0 level on September 04, 2025. You may want to consider a long position or call options on LEN as a result. In of 86 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where LEN advanced for three days, in of 308 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 240 cases where LEN Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The 10-day RSI Indicator for LEN moved out of overbought territory on September 09, 2025. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 32 similar instances where the indicator moved out of overbought territory. In of the 32 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 70 cases where LEN's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for LEN turned negative on September 10, 2025. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 53 similar instances when the indicator turned negative. In of the 53 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where LEN declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
LEN broke above its upper Bollinger Band on September 04, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.525) is normal, around the industry mean (19.495). P/E Ratio (11.017) is within average values for comparable stocks, (55.320). Projected Growth (PEG Ratio) (2.173) is also within normal values, averaging (1.398). Dividend Yield (0.015) settles around the average of (0.037) among similar stocks. P/S Ratio (0.997) is also within normal values, averaging (24.330).
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 70, placing this stock slightly better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. LEN’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a builder of residential buildings and provides residential mortgage, title and closing services
Industry Homebuilding